Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announced that it has filed its disclosure and reports relating to its financial year ended March 31, 2012 and its oil and gas information required under National Instrument 51-101. It has also filed an updated reserves report from independent engineering auditor McDaniel & Associates Consultants Ltd. (“McDaniel”).
The financial disclosure and reports include the management discussion and analysis, financial information, and audited accounts for financial year ending March 2012 and oil and gas information which is included in the Annual Information Form. Copies of these documents may be obtained via www.SEDAR.com or on Primeline’s website at www.pehi.com.
As part of its annual reserves report, McDaniel of Calgary, Canada, updated its independent evaluation of the LS 36-1 gas field development following recent progress. McDaniel reviewed the full Overall Development Plan for the development and the gas sale agreements which had been previously entered into and has updated its evaluation of the natural gas and natural gas liquid reserves located in the LS36-1 gas field in accordance with the standards set out in Canadian National Instrument 51-101 and the Canadian Oil and Gas Evaluation Handbook (COGEH). McDaniel’s evaluation estimates that the LS36-1 gas field has a total project recoverable Probable Reserves of 119 bcf of natural gas and 4.9 MMbbl of natural gas liquid and light oil, which translates to Company net Probable Reserves of 45.1bcf of gas and 1.9 MMbbl of natural gas liquid and light oil and project Possible Reserves of 93 bcf of gas and 3.7MMbbl of natural gas liquid and light oil, which translates to Company net Possible Reserves of 34 bcf of gas and 1.40 MMbbl of natural gas liquid and light oil. Under the oil industry definition, there is a 50% probability that the quantities actually recovered will equal or exceed the Probable Reserves. Possible Reserves are those additional reserves that are less certain to be recovered than Probable Reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the Possible Reserves. McDaniel stated that “As it looks likely that the development will be approved, proved plus possible (“2P”) and proved plus probable plus possible (“3P”) reserves have been assigned as part of this evaluation. Proven reserves have not been assigned as the ODP has not yet been approved by the government.”
Based on its view of the full market product price and the progress made on the LS36-1 Development, McDaniel estimates a net present value for the LS 36-1 project’s Probable Reserves, net to Primeline, of US$189 million at a discount rate of 5% and US$422 million, again net to Primeline, when the Possible Reserves in LS 36-1 are included. It should be noted that these estimated values are not an estimate of fair market value. The effective date of McDaniel’s evaluation is March 31, 2012.
A summary form of the McDaniel’s report is available on Primeline’s website: http://www.pehi.com.
About Primeline Energy Holdings Inc.
Primeline is an exploration and development company focusing exclusively on China resources to become a major supplier of gas and oil to the East China market. Primeline has a 75% Contractor’s interest in and is the operator of the petroleum contract with CNOOC for Block 33/07 in the East China Sea and a 36.75% interest in the LS36-1 gas field in Block 25/34 which is being developed by CNOOC Limited (acting as Operator for the development) together with Primeline and Primeline Petroleum Corporation. Shares of the Company are listed for trading on the TSX Venture Exchange under the symbol PEH.
ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.
Ming Wang
Chief Executive Officer
CONTACT:
PRIMELINE ENERGY HOLDINGS INC.
Andrew Biggs
Senior Vice President
Phone: +44 207.499.8888
Fax: +44 207.499.2288
Toll Free: 1.877.818.0688
Email: IR@pehi.com
CHF INVESTOR RELATIONS
Robin Cook
Senior Account Manager
Phone: +1 416.868.1079 ext. 228
Fax: +1 416.868.6198
Email: robin@chfir.com
Please visit the Company’s website at www.pehi.com. Should you wish to receive Company news via email, please email bren@chfir.com and specify “Primeline Energy” in the subject line.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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